Orascom fined USD 1.3 bln for forex violations in Algeria

News Wireless Algeria 28 MRT 2012
Orascom fined USD 1.3 bln for forex violations in Algeria
An Algerian court has fined Orascom Telecom around USD 1.3 billion for violations of foreign exchange regulations. Orascom is the owner of local mobile operator Djezzy, and its operations were acquired by Russia-based Vimpelcom last year. The claim was brought by Algerian authorities in 2010, and the court of first instance handed down fines totaling DZD 99 billion against Orascom Telecom Algerie and a member of OTA's senior executive team. Vimpelcom said it will appeal the ruling, and the judgement will be suspended once the appeal is lodged. The company said OTA and its management "acted in good faith and in compliance with the law", and the management in Algeria continues to have VimpelCom's full support. It's unclear what the implications of the court ruling will be on Vimpelcom's ongoing negotiations with the Algerian government for a partial sale of Djezzy to the state. OTA is 96.8 percent owned by Orascom Telecom Holdings, which in turn is 51.9 percent owned by VimpelCom. In Janaury, Vimpelcom and the Algerian government announced a MoU to explore the possible sale to the Algerian state of a stake in OTA.

Categories:

Mobile

Companies:

Djezzy,  Orascom Telecom,  Vimpelcom

Countries:

Algeria

Tags:

Financial figures, Wholesale, Government policy, Financial funding, Legislation - Lawsuits

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